GM Backtracking on Plan to Claim Last-Minute EV Tax Credits

General Motors is scrapping a program aimed at allowing its dealers to continue offering for several months a $7,500 tax credit for electric vehicles following the Sept. 30 expiration of the federal subsidy, the company said Wednesday.

Toward the end of last month, GM devised a plan to have its in-house lending arm initiate the purchase of EVs in its dealers’ inventory. The company planned to apply for the federal $7,500 credit on those cars hours ahead of the deadline, and then roll that money into EV lease terms for customers.

The idea behind the program was to ease the impact of the expiration of the tax credit on dealers, who worried that they would be stuck with EVs that would be tough to sell. GM had planned to apply for the credit on tens of thousands of EVs in dealer stocks, according to people familiar with the plan.

“After further consideration, we have decided not to claim the tax credit,” the company said in a statement to Reuters Wednesday. The automaker didn’t elaborate on its decision.

Ford rolled out a similar program ahead of the tax-credit expiration. It’s unclear if Ford is continuing its program. A spokesman didn’t immediately respond to a request for comment.

(Editing by Mike Colias and Chizu Nomiyama )